Maximum Buy-to-Let LTV for Mortgage
Lenders offering buy-to-let (BTL) mortgages typically require larger deposits than residential mortgages, so many will limit buy-to-let LTVs (loan-to-values) to 75% with a 25% deposit.
However, there are a growing number of lenders who can offer higher LTV ratios for buy-to-let mortgages, including options up to 80% – 85% LTV. This means it is possible to get a buy-to-let mortgage with a minimum deposit of 20% -15%.
Can I Get a 95% Buy-to-Let Mortgage?
No, the maximum LTV for a buy-to-let mortgage currently available is 85%.
Can I Get an 85% LTV Buy-to-Let Mortgage?
Whether you can get an 80% or 85% LTV on a buy-to-let mortgage will depend on your situation. Buy-to-let mortgages can vary greatly and the offers available to you are subject to many different factors – e.g. how much deposit you can put down, how much you can pay back every month, etc. Alongside this, lenders will use a rental affordability calculation to determine whether they think your buy-to-let mortgage is financially feasible – this means that the monthly rental income for your new property must be at least equal to 145% of the monthly mortgage payments on an interest-only basis using a nominal rate of around 5%.
When seeking a high LTV buy-to-let mortgage, it’s advisable to work with a mortgage broker who specialises in buy-to-let financing such as John Charcol. We can help you navigate the market, identify lenders offering higher LTV ratios with criteria compatible with your situation, and negotiate favourable terms on your behalf.
What to Expect from a BTL Mortgage with a High LTV
Here are some considerations for high LTV buy–to-let mortgages:
- Specialist lenders – some specialist lenders may offer buy-to-let mortgages with higher LTV ratios, catering to borrowers with specific needs or circumstances. These lenders may be more flexible in their lending criteria and may consider factors beyond traditional income and credit checks. Nonetheless, be prepared to provide detailed financial information, including rental income projections and property details, to support your mortgage application
- Interest rates and fees – higher LTV mortgages often come with higher interest rates and fees to compensate for the increased risk to the lender. It’s essential to carefully consider the overall cost of borrowing and compare rates, fees, and terms from different lenders
- Professional landlord mortgages – some lenders offer specialised buy-to-let mortgage products tailored to professional landlords with larger property portfolios. These products may have more favourable terms and higher LTV ratios for experienced investors with a proven track record of managing rental properties
If you can raise or have access to additional funds or would like to talk through what’s available in more detail, then please let us know on 023 8235 2300 , and we’ll arrange a suitable time for you to talk to one of our consultants.
